What to know:
- HYPE continues declining across daily and weekly timeframes.
- Trading volume rises, showing strong participation despite price weakness.
- Market capitalization slips, reflecting ongoing selling pressure.
- ETF filing and Nasdaq plans could support future demand.
Hyperliquid (HYPE) continues to show a downward price trajectory, extending its recent bearish momentum. Over the past 24 hours, HYPE has declined by nearly 1.93%, reflecting renewed selling pressure. On a broader scale, the token recorded a weekly drop of 3.94%, indicating sustained weakness.
According to the CoinMarketCap data, the token is trading at $38.29, supported by rising market activity. The 24-hour trading volume has reached $386.55 million, reflecting a strong 57.42% daily increase.
Meanwhile, the market capitalization stands at $9.67 billion, showing a 1.29% decline over the same period as momentum builds.
Technical Structure Shows Weakening Momentum
The chart reflects a prior uptrend followed by a corrective phase. Price previously formed higher highs and higher lows, confirming a bullish structure.
However, recent momentum has weakened, showing a short-term pullback as traders take profits and the market consolidates before a potential move, according to the crypto analyst Crypto Tony.
Resistance levels are mainly concentrated around $43, which is where the selling pressure has been building up, resulting in a supply area. The support area is located around $38, which is acting like an active demand area.
Further down, there is a potential support area at $35.5, which could be tested if the current levels fail to hold. Price action is making a series of lower highs, suggesting that the bulls are losing momentum as the market appears to be compressing into a range.
Within this range of $38 to $40, the chart appears to be at a stalemate, suggesting that a breakout or breakdown is imminent. If the price holds at support, it could potentially bounce; if it breaks, it could potentially fall to other support levels.
Institutional Catalysts Could Shift Sentiment
The decision by Grayscale Investments to apply for a spot ETF for HYPE may open doors for more institutional investments to enter the market.
Generally, when an ETF is approved, it boosts the market sentiment, creating strong buying pressure that may result in a price increase in the future. Listing on Nasdaq with a ticker symbol GHYP can provide increased liquidity and exposure.
This increased accessibility can provide an opportunity for both retail and institutional investors to participate in the market, which can further increase trading volumes, ease supply pressure, and create a positive price trend for HYPE.
Why This Matters
HYPE is at a critical crossroads where selling pressure meets rising market activity. This is setting the stage for HYPE’s next big move.
Developments in the space of ETFs and HYPE’s Nasdaq exposure may play a significant role in attracting institutional interest.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
Also Read: Hyperliquid HIP-3 Derivatives Market Surpasses $14 Billion Weekly Volume
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